It'll be difficult with your car, since it has a softer clear. The '11's got a rock hard one. So Unless you have access to a paint micronometer, I recommend you don't even try this as Ford likes to slap the clear coat on really thin on the Pre 2011's. Personally, I'd recommend you go buy a junkyard 2005-2009 Mustang panel and try on that first. I put 60+ hours into my entire's car process, and it came out beautifully. I think my thread is still on the front page in the Keeping it Clean section.
So proceed with caution. I wet sanded my 11 GT and it came out beautifully, but without a quality repaint the orange peel will always be there. All you can do is minimize it.
As far as the process goes. Use:
1500 Grit for the initial cut
2000 grit to remove the marring
2500 grit to finish
3000 grit as well, just in case
As far as sanding technique is concerned, sand in the direction the car was sprayed. So on panels facing the sky it is typically always a nose to tail motion. On panels facing the side (doors/fenders/quarters) It is the same process, never up and down.
Get some good sanding blocks too, itll help. Nikken brand paper is my preference.
Then go over with a DA to finish, I'd try a polishing pad first, then go to a jeweling pad.
But you may need to go for a compounding pad depending how harsh the marring you incuded from wet sanding. Then you can try and go right to a light polishing/jeweling pad with a strong finishing polish, like Menzerna Power Finish (I prefer this greatly over Megs #205 as it works a lot better IMO).